Home construction in Ontario has slowed significantly, causing a drying project pipeline and mounting financial strain for builders. Layoffs have begun, affecting construction trades as well as project management and planning teams, with thousands potentially facing unemployment as high-rise projects finish. Provincial unemployment has risen to 7.8 percent, with 38,000 jobs lost between April and June, driven largely by manufacturing losses tied to U.S. steel and aluminum tariffs. Tariffs have increased material costs, further hurting new home construction. The provincial government is considering changes to housing policy and incentive funds to spur development amid concerns current measures may be insufficient.
Ontario's sluggish home construction market is beginning to trigger job losses in the trades and hurt the province's economy, a group representing builders warns, even as the province moves to refine its housing policy and bolster its incentive programs to spur development. The Residential Construction Council of Ontario, which represents residential builders, says it is beginning to see the impact of slow housing starts, as layoffs begin to take hold.
Last month, a report from the Financial Accountability Office of Ontario said unemployment across the province has jumped to 7.8 per cent the highest rate since late 2012, excluding the pandemic. The province lost 38,000 jobs between April and June. The bulk of that over 29,000 jobs were lost in manufacturing due to U.S. President Donald Trump's tariffs. Tariffs on steel and aluminum have also hurt home construction, contributing to an increase in the cost of materials.
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